Dear UHC Friend,

On January 2, President Obama signed into law a reinstatement and extension of the charitable IRA rollover through the end of 2013. As a result, donors aged 70½ or older are once again eligible to move any amount up to a total of $100,000 from their IRAs directly to qualified charities without having to pay federal income taxes on the money. This means that you may make a qualified charitable distribution to the Utah Humanities Council through a direct rollover on or before Dec. 31, 2013, to have the transfer qualify as a 2013 gift.

Options are also still available for 2012 giving, but action must be taken by January 31, 2013.

Because this legislation was enacted in 2013, after most people had already taken their distribution for 2012, Congress also provided two special rules that create a limited window of opportunity to make gifts of IRA assets now and have them qualify as 2012 gifts. However, quick action is required:

1. First, a taxpayer who took a distribution from an IRA in December 2012 may make a cash gift from that distribution by January 31, 2013, and have the cash gift qualify for charitable IRA rollover treatment in 2012. This means that the cash gift will not be included in your taxable income for 2012. In this case, you would make the cash gift directly to the Utah Humanities Council and indicate that it is intended to be a qualifying gift from the IRA that you identify. The UHC would then send the appropriate acknowledgement.

2. Second, a taxpayer who makes a direct rollover from an IRA to the Utah Humanities Council by January 31, 2013, may also have the transfer qualify retroactively as a charitable IRA rollover for 2012. This means that the gift will not be included in your taxable income for 2012. In this case, you would contact your IRA administrator and authorize them to make a transfer directly from your IRA to the UHC.

Your Benefits:
- The transfer generates neither federal taxable income nor a tax deduction, so you will receive the benefit even if you do not itemize your tax deductions.

- The transfer may count against your unsatisfied required minimum distribution.

- The benefit to the Utah Humanities Council will be immediate, allowing you to see the results of your generosity NOW.

Of course, all other requirements relating to charitable IRA rollovers must be satisfied; we urge you to consult with your legal or financial advisor before making a gift of IRA assets.